The Philippine Competition Commission (PCC) has cleared the proposed full takeover of Natura & Co. UK Holdings Limited by Avon International Limited, saying the transaction is unlikely to substantially lessen competition in the local market.
The regulator’s Mergers and Acquisitions Office (MAO) found during its phase 1 review that the deal does not raise competition concerns because of an absence of relevant market overlap between the parties.
The commission said the companies’ products and services belong to different segments within the intimate apparel industry.
Avon International, a special purpose vehicle within the Regent L.P. Group, is leading the acquisition. Regent is an investment fund that owns global brands including luxury footwear label Bally and intimate apparel brand La Senza.
In the Philippines, Regent licenses its business methods, proprietary guidelines and training to third-party franchisees. The company does not directly engage in the wholesale or retail sale of its branded products in the country.
Natura UK manufactures and markets cosmetics, personal care, and mass-market fashion products. It distributes these primarily through e-commerce, direct selling and limited retail outlets. Its Philippine operations include Avon Cosmetics Inc., which handles sales, and Avon Products Manufacturing Inc., which produces items for domestic and export markets.
The PCC said the companies are neither direct competitors nor engaged in a supplier-customer relationship. Even within the broader Philippine intimate apparel market, the commission determined the deal is unlikely to significantly enhance market power or harm competition.
The combined market shares following the transaction will not materially change market composition, the PCC said, adding that both parties continue to face strong competition from other industry players.
